Regular Session 2021-2022 House Bill 0745 P.N. 0730

PRINTER'S NO. 730

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

745

Session of

2021

INTRODUCED BY HANBIDGE, KINSEY, BOBACK, SANCHEZ, McNEILL,

FREEMAN, SCHWEYER, CIRESI, WEBSTER, DELLOSO, MALAGARI AND

ROZZI, MARCH 3, 2021

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, MARCH 3, 2021

AN ACT

Amending the act of March 28, 1984 (P.L.150, No.28), entitled

"An act relating to the rights of purchasers and lessees of

defective new motor vehicles," further providing for

definitions, for disclosure, for repair obligations, for

manufacturer's duty for refund or replacement, for

presumption of a reasonable number of attempts, for civil

cause of action and for resale of returned motor vehicle.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 2, 3, 4(a), 5, 6(b)(3), 8 and 10 of the

act of March 28, 1984 (P.L.150, No.28), known as the Automobile

Lemon Law, are amended to read:

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Dealer" or "motor vehicle dealer." A person in the business

of buying, selling, leasing or exchanging motor vehicles or

recreational vehicles.

"Department." The Department of Transportation of the

Commonwealth.

"House coach." A motor vehicle with an enclosed area that is

designed, constructed or equipped for use, either permanently or

temporarily, as a mobile dwelling place, sleeping place or

camping accommodation. A house coach includes:

(1) a motor home;

(2) a slide-in cabin;

(3) a sleeping unit specifically designed for mounting

on a pickup truck; and

(4) a sleeping cabin designed for use on trucks and

truck tractors operated for heavy-duty, long-distance

hauling.

"House trailer." Any of the following:

(1) A trailer that is designed, constructed and equipped

for use, either permanently or temporarily, as a mobile

dwelling place or sleeping place and is equipped for use as a

conveyance on streets and highways.

(2) A trailer containing a chassis and exterior shell

designed and constructed for use as a house trailer, as

defined in paragraph (1), but which is used permanently or

temporarily for advertising, sales, display or promotion of

merchandise or services or for any other commercial purpose

except the transportation of property.

"Manufacturer." Any person engaged in the business of

constructing or assembling new and unused motor vehicles or

recreational vehicles or engaged in the business of importing

new and unused motor vehicles or recreational vehicles into the

United States for the purpose of selling or distributing new and

unused motor vehicles or recreational vehicles to motor vehicle

dealers in this Commonwealth.

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"Manufacturer's express warranty" or "warranty." The written

warranty of the manufacturer of a new automobile or recreational

vehicle of its condition and fitness for use, including any

terms or conditions precedent to the enforcement of obligations

under the warranty.

"Motor home." A motor vehicle designed or adapted for use as

a mobile dwelling place or office, except a motor vehicle

equipped with a truck-camper.

"New motor vehicle." Any new and unused self-propelled,

motorized conveyance driven upon public roads, streets or

highways which is designed to transport not more than 15

persons, which was purchased or leased and is registered in the

Commonwealth or purchased or leased elsewhere and registered for

the first time in the Commonwealth and is used, leased or bought

for use primarily for personal, family or household purposes,

including a vehicle used by a manufacturer or dealer as a

demonstrator or dealer car prior to its sale. The term does not

include motorcycles[, motor homes] or off-road vehicles.

"Nonconformity." A defect or condition which substantially

impairs the use, value or safety of a new motor vehicle and does

not conform to the manufacturer's express warranty.

"Purchaser." A person, or his successors or assigns, who has

obtained possession or ownership of a new motor vehicle or

recreational vehicle by lease, transfer or purchase or who has

entered into an agreement or contract for the lease or purchase

of a new motor vehicle or recreational vehicle which is used,

leased or bought for use primarily for personal, family or

household purposes.

"Recreational trailer." A trailer designed or adapted to

provide temporary living quarters for noncommercial

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recreational, camping or travel use.

"Recreational vehicle." Any new and unused self-propelled

motorized conveyance or vehicle to be towed by a motor vehicle

that is purchased or leased for the first time in this

Commonwealth and that is registered in this Commonwealth if

required by the Department of Transportation. This term

includes, but is not limited to:

(1) a house coach;

(2) a house trailer;

(3) a motor home;

(4) a recreational trailer; or

(5) a truck-camper.

"Truck camper." A structure designed, used or maintained

primarily to be loaded or affixed to a motor vehicle to provide

a mobile dwelling , sleeping place, office or commercial space.

Section 3. Disclosure.

The Attorney General shall prepare and publish in the

Pennsylvania Bulletin a statement which explains a purchaser's

rights under this law. Manufacturers shall provide to each

purchaser at the time of original purchase of a new motor

vehicle or recreational vehicle a written statement containing a

copy of the Attorney General's statement and a listing of zone

offices, with addresses and phone numbers, which can be

contacted by the purchaser for the purpose of securing the

remedies provided for in this act.

Section 4. Repair obligations.

(a) Repairs required.--The manufacturer of a new motor

vehicle or recreational vehicle sold or leased and registered in

the Commonwealth shall repair or correct, at no cost to the

purchaser, a nonconformity which substantially impairs the use,

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value or safety of said motor vehicle or recreational vehicle

which may occur within a period of one year following the actual

delivery of the vehicle to the purchaser, within the first

12,000 miles of use or during the term of the warranty,

whichever may first occur.

* * *

Section 5. Manufacturer's duty for refund or replacement.

If the manufacturer fails to repair or correct a

nonconformity after a reasonable number of attempts, the

manufacturer shall, at the option of the purchaser, replace the

motor vehicle or recreational vehicle with a comparable motor

vehicle or recreat ional vehicle of equal value or accept return

of the vehicle from the purchaser and refund to the purchaser

the full purchase price or lease price, including all collateral

charges, less a reasonable allowance for the purchaser's use of

the vehicle not exceeding 10¢ per mile driven or 10% of the

purchase price or lease price of the vehicle, whichever is less.

Refunds shall be made to the purchaser and lienholder, if any,

as their interests may appear. A reasonable allowance for use

shall be that amount directly attributable to use by the

purchaser prior to his first report of the nonconformity to the

manufacturer. In the event the consumer elects a refund, payment

shall be made within 30 days of such election. A consumer shall

not be entitled to a refund or replacement if the nonconformity

does not substantially impair the use, value or safety of the

vehicle or the nonconformity is the result of abuse, neglect or

modification or alteration of the motor vehicle by the

purchaser.

Section 6. Presumption of a reasonable number of attempts.

* * *

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(b) Time period extension.--

* * *

(3) Paragraphs (1) and (2) shall apply only if the

manufacturer, its agent or authorized dealer lends a motor

vehicle or recreational vehicle to the owner at no charge

during the period of time under paragraphs (1) and (2),

respectively, that the owner's vehicle is with the

manufacturer, its agent or authorized dealer for repair.

Section 8. Civil cause of action.

Any purchaser of a new motor vehicle or recreational vehicle

who suffers any loss due to nonconformity of such vehicle as a

result of the manufacturer's failure to comply with this act may

bring a civil action in a court of common pleas and, in addition

to other relief, shall be entitled to recover reasonable

attorneys' fees and all court costs.

Section 10. Resale of returned motor vehicle or recreational

vehicle.

(a) Vehicles may not be resold, transferred or leased at

retail or wholesale.--If a motor vehicle or recreational vehicle

has been repurchased under the provisions of this act or a

similar statute of another state, it may not be resold,

transferred or leased in this State unless:

(1) The manufacturer provides the same express warranty

it provided to the original purchaser, except that the term

of the warranty need only last for 12,000 miles or 12 months

after the date of resale, transfer or lease, whichever is

earlier.

(2) The manufacturer provides the purchaser, lessee or

transferee with a written statement on a separate piece of

paper, in ten point all capital type, in substantially the

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following form:

"IMPORTANT: THIS VEHICLE WAS REPURCHASED BY THE

MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE

MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS

NOT CURED WITHIN A REASONABLE TIME AS PROVIDED BY

PENNSYLVANIA LAW."

(3) The motor vehicle or recreational vehicle dealer,

lessor or transferor clearly and conspicuously discloses the

manufacturer's written notification prior to the resale or

lease of the repurchased motor vehicle or recreational

vehicle.

(4) The motor vehicle or recreational vehicle dealer,

lessor or transferor obtains a signed receipt certifying in a

conspicuous and understandable manner that the written

statement required under this subsection has been provided.

Access to the receipt shall be maintained for four years. The

Attorney General shall approve the form and content of the

disclosure statement supplied by the manufacturer.

(5) The manufacturer, dealer, lessor or transferor

applies for and receives the designation of a branded title

from the department.

(6) The department shall update its records and issue a

title with a designation indicating that the motor vehicle or

recreational vehicle was repurchased under the provisions of

this act. The department shall forward to subsequent

purchasers or lienholders, in accordance with 75 Pa.C.S. §§

1107 (relating to delivery of certificate of title) and

1132.1 (relating to perfection of security interest in a

vehicle), a certificate of title which indicates that the

vehicle was branded under the provisions of this act. The

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department shall determine the exact form and content of the

title brand.

The provisions of this section apply to the resold, transferred

or leased motor vehicle or recreational vehicle for the full

term of the warranty required under this subsection. Failure of

the manufacturer, dealer, lessor or transferor to notify its

immediate purchaser of the requirements of this section subjects

the manufacturer, dealer, lessor or transferor to pay to the

Commonwealth a civil penalty of $2,000 per violation and, at the

option of the purchaser, to replace the motor vehicle or

recreational vehicle with a comparable motor vehicle or

recreational vehicle of equal value or accept return of the

vehicle from the purchaser and refund to the purchaser the full

purchase price, including all collateral charges, less a

reasonable allowance for the purchaser's use of the vehicle not

exceeding 10¢ per mile driven or 10% of the purchase price of

the vehicle, whichever is less.

(b) Returned vehicles not to be resold.--Notwithstanding the

provisions of subsection (a), if a new motor vehicle or

recreational vehicle has been returned under the provisions of

this act or a similar statute of another state because of a

nonconformity resulting in a complete failure of the braking or

steering system of the motor vehicle or recreational vehicle

likely to cause death or serious bodily injury if the vehicle

was driven, the motor vehicle or recreational vehicle may not be

resold in this Commonwealth.

agreement entered into by a purchaser that waives, limits or

disclaims the rights set forth in this act is void as contrary

to public policy. Where applicable, the rights set forth in this

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act shall extend to a subsequent purchaser, lessee or transferee

of the motor vehicle or recreational vehicle.

Section 2. This act shall take effect in 60 days.

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